Chapter 176

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AN ACT AUTHORIZING CERTAIN TERMS FOR BORROWING BY THE TOWN OF NORFOLK FOR CONSTRUCTING A GOLF COURSE.

Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
as follows:

SECTION 1.
Notwithstanding chapter 44 of the
General Laws to
the contrary, the maturities of bonds issued by the town of Norfolk for the
design,
development, construction and equipping of a municipal golf course, including a
clubhouse and related structures, and also including the acquisition of land
and
existing buildings, improvements, equipment and furnishings and the repair and
renovation of existing buildings and improvements, either shall be arranged so
that for each issue the annual combined payments of principal and interest
payable in each year, commencing with the first year in which a principal
payment
is required, shall be as nearly equal as practicable in the opinion of the town
treasurer, or shall be arranged in accordance with a schedule providing for a
more rapid amortization of principal. The first payment of principal of each
issue of bonds shall be not later than 1 year from the estimated date of
commencement of regular operation of the golf course as a municipal golf
course,
as determined by the town treasurer, and the last payment of principal shall be
not later than 30 years from the date of the bonds. Project costs to be
financed
by the issue of the bonds may include interest incurred on the bonds and any
bond
anticipation notes for a period of up to 1 year after the date of the original
borrowing or, if later, 1 year after the estimated date of commencement of
regular operations of the golf course, as determined by the town treasurer.
The
town may create and maintain, from bond proceeds or other sources of funds,
such
reserve, replacement, maintenance and improvement funds in connection with the
golf course as it may deem necessary and prudent, but the aggregate of such
funds
provided from bond proceeds for the project shall not exceed 10 per cent of
the
principal amount of the bonds issued for the project. Any net earnings derived
from the investment of the proceeds of the bonds may be expended by the town
treasurer to pay interest on the bonds but otherwise shall be used only for
acquisition, construction, equipping, operation or maintenance of the golf
course. Except as otherwise provided in this act, indebtedness incurred by the
town for the golf course project shall be subject to the applicable provisions
of
said chapter 44.

SECTION 2. The town of Norfolk shall establish an Enterprise Fund for
the golf course facility and its operation, which shall be subject to section
53F½ of chapter 44 of the General Laws; provided, however, that any
available surplus in the reserve fund established under said section 53F½
may be appropriated by the town for any capital project for which borrowing
may be authorized under section 7 or
section 8 of said chapter 44.

SECTION 3.
The vote of the town passed under Article 6 of the
warrant
for the
special town meeting held on June 18, 2001 authorizing the issuance of bonds
or
notes for the golf course project, is hereby ratified, validated and confirmed.
Proceeds of the bonds
issued in accordance with section 1 of this act may be
used
to refund any bond anticipation notes previously issued for the acquisition,
design, environmental permitting and other preliminary expenses relating to the
golf course project.